Coinbase’s IPO move sends stock to four month high
Coinbase Global shares touched a four-month high above $208 on Sept. 21, extending a sharp rebound in the crypto exchange’s stock as Bitcoin and other digital assets rallied.
COIN climbed as high as $208.33 during the session before closing at $201.05, up 3.5%.
The move followed an 11.7% gain in the previous session and came as Bitcoin traded near an eight-month high, improving sentiment across crypto-linked equities.
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Coinbase brings IPO investing to its app
Coinbase announced on Sept. 21 that eligible retail investors in the United States can now request allocations in initial public offerings directly through its app. The move expands its push to become what the company calls an “Everything Exchange.”
The service will begin with smart-ring maker Oura, which is seeking to sell 50 million shares at $40 to $44 each in an offering that could raise up to $2.2 billion. It has applied to list on Nasdaq under the ticker OURA.
Coinbase said customers can submit a “Conditional Offer to Buy” once an IPO’s expected price range becomes public. Allocations will depend on available supply and customer demand, meaning requests may be filled fully, partially or not at all.
Following the announcement, Clear Street raised its price target to $224 from $204 while reiterating a Buy rating on Sept. 21, Bernstein reiterated its $330 Buy target the same day, and William Blair reiterated a Buy rating on Sept. 22.
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The expansion comes as Coinbase continues reducing its reliance on traditional crypto trading fees.
In the second quarter, its crypto trading volume market share reached a record 10.3%, while subscription and services revenue rose to $555 million, representing 48% of net revenue. Prediction-market contracts and revenue also increased 106% quarter over quarter.
“In Q2 we hit our 3rd consecutive all-time high in crypto trading volume market share,” CEO Brian Armstrong said, adding that Coinbase was “no longer a bet just on the price of Bitcoin.”
SEC pushes for more public listings
Coinbase’s IPO expansion also arrives as the U.S. Securities and Exchange Commission moves to make public markets more accessible.
SEC Chair Paul Atkins said in May that two proposed rule changes formed the foundation of his agenda to “Make IPOs Great Again,”. It included measures intended to reduce regulatory burdens and encourage more small and midsized companies to go public.
